India gold futures extended gains for a second day on Monday, helped by a weak rupee, which makes the dollar-quoted asset expensive, analysts said.
The most-traded December gold contract on the Multi Commodity Exchange (MCX) was 0.31% higher at Rs15,886 per 10 grams at 10:57am, after gaining 0.13% in the previous session.
The Indian rupee dropped for a second straight session as the dollar’s rise against major units depressed sentiment, while traders were closely eyeing the sharemarket for cues on fund flows.
“There would be sideways movement in gold. Range expected is 15,720-15,870 rupees,” said Kunal Shah, an analyst with Nirmal Bang Commodities. “Profit-taking cannot be ruled out after last week’s rise.”
